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Business, 26.03.2020 18:44 cindyc1103
Alpaca Corporation had revenues of $240,000 in its first year of operations. The company has not collected on $19,700 of its sales and still owes $26,000 on $100,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,000 in salaries. Owners invested $25,000 in the business and $25,000 was borrowed on a five-year note. The company paid $2,900 in interest that was the amount owed for the year, and paid $7,000 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation.
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Alpaca Corporation had revenues of $240,000 in its first year of operations. The company has not col...
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